7YFUNCTIONAL SEGMENTATION Ine cur rent organizational struct

7.YFUNCTIONAL SEGMENTATION Ine cur rent organizational structure of Blue Sky Company, a manufacturer of small sailboats, is pre- sented below. Reguirei a. What operational problems (e.g, inefficiency, errors, or fraud) do you think Blue Sky could experienoe because of this structure? b. Draw a new diagram reflecting an improved structure that solves the problems you identified If necessary, you may add up to two new positions Prodkction ventory Management Paoduction Sales Manager Finarcial Invemory Ware house sembly Gredt Approw Purchasinganding contrO Biling

Solution

Instead of giving you the complete answer, I will give you key points based on which you can structure the answer, and most importantly, answer question 2 with your own school of thought:

The key issues with the current structure are:

What you can do is, introduce two positions (Finance & HR), move the finance roles (cost accounting, disbursements, credit limits, account receivables) under this position, and the HR related positions (payroll, Housekeeping) under this position. You should end up with a much more improved structure that way. Of course, please feel free to add your thoughts to the final organization structure.